Pa. pushes new electric regulations after rate shock

Proposal would speed up the switch between providers

HARRISBURG >> State regulators want to speed up the amount of time it takes to switch electric suppliers following a wave of complaints over high bills this winter.

Customers would be able to switch companies within three business days under new rules proposed by the Pennsylvania Public Utility Commission. Currently it can take anywhere from 11 to 40 days to switch suppliers.

"It's a huge needle-mover because we want customers to be able to be portable and be able to get into new products and not be trapped in what we call the 16- to 40-day billing cycle," PUC Chairman Robert F. Powelson said in a statement. "At the end of the day, this is about helping consumers that are actively out there on the market shopping by giving them greater portability, greater notification of the products that they're being served by suppliers."

In filings with regulators, both consumer groups and electric suppliers said that while they recognize consumers' concerns they had concerns of their own with the proposed regulations.

FirstEnergy, parent company of West Penn and Penelec, said based on very preliminary projections, initial programming would cost a minimum of $1.5 to $2 million just for a temporary solution, according to a filing with the PUC. Further development costs would be significantly higher.

Electric companies would be allowed to recover the costs through their next base rate proceedings.

The PUC has received nearly 10,000 complaints about electric prices during February and March, with many consumers complaining about the amount of time it takes to switch electric suppliers.

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Wholesale electric prices spiked during the unusually cold winter, causing some customers with variable rate contracts to see rates double or triple.

Still, FirstEnergy said in its filing that simply accelerating the time it takes to switch suppliers does not address the heart of the problem because most customers do not realize what the charges are until they receive their bill.

The PUC also approved regulations requiring suppliers to disclose information more prominently in the contract, especially for customers with variable rate contracts. Customers would have access to historical price data and receive separate mailings for fixed-term contracts that are expiring or any changes to terms of service.

Before they go into effect, the proposed regulations still need approval from the Independent Regulatory Review Commission, Attorney General's Office, Senate Consumer Protection and Professional Licensure Committee and House Consumer Affairs Committee.

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